Gates Foundation infuses $9.93 mn in online pharmacy 1mg

Online pharmacy 1mg Technologies has raised $9.93 million (Rs 71 crore) from philanthropic organisation Bill & Melinda Gates Foundation in a Series B round of funding.

The round raised by the Gurugram-based company is slightly short of the $10 million it sought to garner from the foundation. 

In an offer dated January 18, approved by the board of 1mg, it offered to issue 21,210 shares for Rs 73 crore (around $10 million), subject to currency fluctuations. However, on January 24, 1mg allotted 20,629 shares at Rs 34,317.87 apiece, lower than the offer price of Rs 34,417.87 per share, regulatory filings show. However, 1mg managed to allot the shares at a 56% premium compared to the fair market valuation of Rs 22,008.81 per share.

Earlier a part of Bright Lifecare-owned Healthkart, the company was rebranded as 1mg in 2015 and made into a separate subsidiary. Since then, as per TechCircle estimates, the company has raised a total of $136 million from multiple investors.

In June last year, the company raised $70 million in a funding round led by Swiss family office Corisol Holding, along with World Bank arm International Finance Corporation, South Korean venture capital firms Redwood Global and Korea Omega Healthcare. Returning investors Sequoia Capital India, Maverick Ventures, HBM Healthcare, Omidyar Network India and Kae Capital participated in the round.

Founded in 2011 by Prashant Tandon, Gaurav Agarwal and Vikas Chauhan, the online pharmacy enables users to purchase medicines, healthcare and personal care products, consult doctors and book diagnostic tests on its website and app. The platform has over 150 million visitors and has delivered 25 million orders in over 1,000 cities, as per information on its website. 

The company competes with other online pharmacies such as NetMeds, PharmEasy and Medlife. In December last year, Medlife raised $15 million in a non-convertible debenture issue to Wilson Global Opportunities Fund. The company also posted a net loss of Rs 403 crore, higher than the previous year’s Rs 164 crore. 

In March 2019, NetMeds acquired clinic management platform KiViHealth in a cash and stock transaction.

Started by technology giant Microsoft founder Bill Gates and his wife Melinda Gates, the foundation tied up with Tata Trusts to boost agri-tech ecosystems in India last year. The entity has direct investments in agritech startups Stellapps and Cropln. It has also supported IIM-A’s Financial Inclusion Lab.